Vacancies are higher, more evictions, higher maintenance costs.

On rentals, are there a lot of vacancies, or a huge demand and prices high? 

-Increases the Value of the property, almost always by at least the invested amount, in many areas of San Diego, it can increase the value of the property by as much as 150% of the invested amount-Decreases your risk profile, having 4 units instead of 2, helps stabilize your rental revenue when vacancies and repairs have to happen.

I would avoid, suffered huge losses due to 6+ month vacancies between tenants and very expensive turn repairs (~4k after only 1 year).I will update this post if my experience changes for the better 

However, if you’re unsure about future property values due to the unique nature of the property, this could pose more risk.What You May Not Be Considering:Financing Flexibility: Using a HELOC for repairs is a solid plan, but make sure the loan terms are favorable and the rates are manageable over time, especially with interest rates fluctuating.Vacancy and Maintenance Costs: Once all units are rented, factor in potential vacancy periods and ongoing maintenance costs, especially with multiple units.In conclusion, while the repairs are a big expense, the strong rental income potential suggests it could be a good deal if you manage the rehab costs well.

You’ve already experienced a stressful beginning to the year with turnover and vacancies, so ensuring that any new investments won’t put you back in that situation is crucial.Another thing to consider is your overall strategy.

This mismanagement greatly increased our maintenance costs and delayed efforts to improve the property's condition.Evictions & Vacancy: Due to these missteps, we spent months working through the courts to evict problematic tenants.

The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Repairs, vacancy, PM, etc, break even looks about right if you're getting 2100/2200 month. 

Hi Brian,You're on the right track, but to determine if you're truly generating cash flow, it's important to look beyond just your mortgage payment.Here's what to consider:Income: You're receiving $2,100 in rent, which is great.Expenses: Besides your $3,232 mortgage, you likely have other expenses like property taxes, insurance, maintenance, utilities (if you cover any), and potential vacancy costs.If your total rental income exceeds all of these combined costs, then you're generating positive cash flow.